Stacy Summary:  Interesting that the article about China turning to Adam Smith is not about them turning to The Wealth of Nations but to The Theory of Moral Sentiments.  This is about the opposite of market fundamentalists who only choose selective writings to support their ideology.

• Mauritius buys 2 tonnes of IMF gold

• China turns to Adam Smith

Stacy Summary:  And,  you may remember from Money Geyser, where the carry trade leads . . .

• China’s Liu Says U.S. Rates Cause Dollar Speculation

“The continuous depreciation in the dollar, and the U.S. government’s indication, that in order to resume growth and maintain public confidence, it basically won’t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation,” he told reporters in Beijing today at the International Finance Forum.

Liu said this has “seriously affected global asset prices, fuelled speculation in stock and property markets, and created new, real and insurmountable risks to the recovery of the global economy, especially emerging-market economies.”